Participants and beneficiaries of the Providence Health & Services and Swedish Health Services 401(k) plans may receive automatic account allocations under a proposed settlement valued at approximately $42.7 million. No claim form is required, and the notice estimates an average individual allocation of about $106.
The settlement resolves allegations that plan fiduciaries breached duties and engaged in prohibited transactions under federal retirement law. The defendants deny the claims and say the plans were managed lawfully. The court has scheduled a fairness hearing for October 20, 2026.
Which plan participants are included?
The class covers participants or beneficiaries of the Providence Health & Services 401(k) Savings Plan or Swedish Health Services 401(k) Plan from January 1, 2018, through June 4, 2026. It also includes alternate payees entitled to a plan benefit under a qualified domestic relations order.
The class is certified under a rule that does not allow members to opt out. If the settlement receives final approval, eligible members will receive the applicable benefits and will release the covered claims whether or not they take action now.
Plan and recordkeeper data will control allocations. Former participants whose accounts need to be reactivated will have that done at the defendants' expense.
The $42.7 million value has three components
The largest immediate pool consists of approximately $21.4 million held in the plans' forfeiture and special unallocated accounts as of December 31, 2025. Those assets will be allocated to class members' plan accounts under a court-approved allocation plan.
The defendants will also pay the plans' recordkeeping and administrative expenses for 2026, 2027 and 2028. The notice values that relief at approximately $5.1 million per year, or $15.3 million total, meaning participants will not be charged those regular expenses during the three covered years.
A further $6 million will cover court-approved legal fees and costs, administration and a service award. Any part of that cash amount left after approved deductions will be allocated to class members.
Each member receives the same basic allocation
The notice says the unallocated plan assets and net cash fund will be divided on a per-capita basis, so each class member receives the same basic payment amount from those components. Class counsel estimates approximately $106 per member, but calls that figure only an estimate.
The final amount depends on court-approved fees, expenses and the service award, the settlement administrator's calculations and the number of included members. The administrator will use plan records, and its determinations under the approved allocation plan will be final and binding.
The three years of paid plan expenses are an additional plan-level benefit; they are not part of the estimated $106 account allocation.
Payments go through the retirement plans
No claim form is necessary. The net cash and unallocated assets will be deposited into the plans and allocated by the recordkeeper. Settlement payments are to be invested in the Vanguard Fiduciary Trust Company Target Retirement Income Trust unless handled under the plan's distribution rules.
No taxes will be withheld when money is first allocated to individual plan accounts. Former participants with reactivated accounts may request a distribution, and accounts of $1,000 or less may be handled through the plan's normal automatic-distribution process. A later check can be reduced by required tax withholding or penalties.
Former participants should contact the administrator if their mailing address has changed. If approval becomes final without an appeal, the notice says allocation will likely occur within six months of the final approval order; an appeal could extend the timing substantially.
Members cannot opt out but may object
Because the settlement class was certified under Federal Rule of Civil Procedure 23(b)(1), the notice says members cannot exclude themselves. They may object to any part of the agreement by mailing a written objection postmarked by October 6, 2026.
The fairness hearing is scheduled for October 20, 2026, at 10:30 a.m. "P.S.T.," as printed in the notice, in federal court in Seattle. Attendance is optional, and the court may change the schedule. Someone who wants to speak must include or separately submit a timely notice of intent to participate.
The $6 million cash component is intended to cover court-approved attorneys' fees and costs, settlement administration and a service award of up to $5,000 for the class representative. The notice contains slightly different presentations of the fee-and-cost request in separate sections, so readers should consult the filed motion for the final amount. The court will decide what to approve.
The ERISA claims are contested
Plaintiff Victoria Halter alleged breaches of fiduciary duty and prohibited transactions under the Employee Retirement Income Security Act. The official notice directs readers to the complaint for the complete allegations.
The defendants deny liability, deny that plan members suffered compensable harm and contend that the plans were managed in compliance with ERISA and in participants' best interests. The settlement avoids continued litigation and provides automatic benefits without a court finding that the defendants violated the law.